Gold Import Duty, Import Duty on Gold, Import Duty: Taking a big decision, the government has increased the import duty on gold by 5 percent. At present, there is an import duty of 7.5% on gold. Now 12.5 per cent import duty will have to be paid on gold. Due to this, there will be a direct increase of 5 percent in the price of gold. Meaning, if the price of gold is Rs 50000 today, then the price of gold will increase by Rs 2500 directly. New import duty is effective from 30 June 2022
Due to the costly import duty on gold, the price of gold will be Rs 2500 more expensive. The government has increased the import duty on gold to deal with the falling rupee against the dollar. India imports 700 to 1000 tonnes of gold annually.
Gold comes from abroad, so it is traded in dollars. Due to which the value of Rupee Increasing import duty on gold will strengthen the rupee. This means that now there will be 15.75 percent total duty on gold.
The government has announced to increase the import duty on gold by 5 percent in a gadget notification issued on June 30, 2022. Here you can see the government issued gadget notification.
At present, there is an import duty of 7.5% on gold. In this, 3% GST is added. Due to which the tax on gold increases to 10.5 percent. Now with the increase in duty by 5 per cent, the total tax on gold will increase to 15.5%. If we add GST to this, then there will be a further increase of 0.15 percent in the price. Meaning the customer will now have to pay 5.15 percent more.
Due to the price of gold becoming expensive, customers will have to pay Rs 2500 to 3000 per 10 grams directly. If the price of 10 grams is Rs 50000, then now they will have to pay Rs 52500 directly.
Due to the increase in import duty on gold, the risk of smuggling of gold has also increased. Due to the sudden increase in the price of gold, now gold smugglers will be active and smuggling through airport and road will increase. The falling rupee against the dollar can definitely get support from this move.
With the increase in duty, now those customers who bought gold jewelery last week and did not take their delivery will now worry more. Customers who went shopping on June 30, who had stopped the jewelery without paying the amount, will also have to pay a higher price today.
Due to the increase in import duty on gold, the risk of smuggling of gold has also increased. Due to the sudden increase in the price of gold, now gold smugglers will be active and smuggling through airport and road will increase.
